TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended sharply lower on Tuesday adding to the huge losses from the previous session, tracking declining global equity markets even as oil continued to plummet on persistent supply glut worries and over concerns Greece may leave the eurozone after elections.

The Canadian market remained under pressure after oil prices continued to fall, dropping to under $48 a barrel. The strong performance of gold stocks provided some support, as investors sought safe havens.

Global equity markets were under pressure as concerns over a potential Greek exit from the Eurozone persisted. Investors eagerly anticipate the outcome of the country's general elections, slated for January 25.

The U.S. markets also ended significantly lower following recent declines, on some disappointing economic data today, with weaker than expected factory orders and service sector reports.

With orders for durable and non-durable goods falling, the Commerce Department's report showed new orders for U.S. manufactured goods dropped more than expected in November.

Meanwhile, activity in the U.S. service sector grew at a notably slower rate in December, touching a six-month low, a report from the Institute for Supply Management showed Tuesday.

The benchmark S&P/TSX Composite Index closed Tuesday at 14,246.77, down 145.93 points or 1.01 percent. The index scaled an intraday high of 14,370.40 and a low of 14,161.98.

On Monday, the index closed lower by 360.95 points or 2.45 percent, at 14,392.70, with an intraday high of 14,709.02 and a low of 14,339.40.

Crude oil ended lower amid a stronger dollar, supply glut worries and renewed concerns about the future of the eurozone.

Analysts see oil markets to be oversupplied even as some predict crude prices near $40 by months end. Crude oil prices have plummeted from above $100 this summer, with gasoline prices in the U.S. down for 102 straight days. The national average for a gallon of gas was down to $2.18.

The Energy Index plunged 2.12 percent, with U.S. crude oil futures for February delivery tumbling $2.11 or 4.2 percent to close at $47.93 a barrel on the Nymex Tuesday.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) fell 2.90 percent, Suncor Energy Inc. (SU.TO) dropped 1.37 percent, and Canadian Oil Sands Limited (COS.TO) plunged 5.26 percent.

Pacific Rubiales Energy Corp. (PRE.TO) dived 5.36 percent, Encana Corp. (ECA.TO) fell 1.10 percent, and Cenovus Energy Inc. (CVE.TO) adding 0.09 percent.

Crescent Point Energy (CPG.TO) climbed 1.09 percent, after announcing a $1.45 billion capital expenditures budget for 2015.

Gold futures ended sharply higher with investors seeking the safe haven of the precious metal on concerns over the Greek crisis and the plunge in crude oil prices.

The Global Gold Index surged 6.01 percent, with gold for February delivery jumping $15.40 or 1.3 percent to settle at $1,219.40 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Kinross Gold Corp. (K.TO) soared 13.51 percent, Agnico Eagle Mines Limited (AEM.TO) gained 6.52 percent, Goldcorp Inc. (G.TO) surged 8.11 percent, Eldorado Gold Corp. (ELD.TO) jumped 4.31 percent, and Franco-Nevada Corp. (FNV.TO) advanced 2.11 percent.

Barrick Gold Corp .(ABX.TO) added 3.90 percent.

The Capped Materials Index jumped 3.12 percent, mostly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 1.21 percent.

The heavyweight Financial Index dived 1.60 percent, as National Bank of Canada (NA.TO) fell 0.19 percent, Toronto-Dominion Bank (TD.TO) dropped 1.67 percent, and Bank of Nova Scotia (BNS.TO) fell 1.24 percent.

Royal Bank of Canada (RY.TO) dropped 0.71 percent, while Bank of Montreal (BMO.TO) surrendered 1.39 percent. Canadian Imperial Bank of Commerce (CM.TO) fell 2.70 percent.

The Healthcare Index lost 1.56 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) declined 0.44 percent and Catamaran Corp. (CCT.TO) dropped 2.61 percent.

The Diversified Metals & Mining Index slipped 0.22 percent, as Teck Resources Limited (TCK.B.TO) slipped 0.06 percent, First Quantum Minerals Ltd. (FM.TO) gained 2.65 percent, and Finning International Inc. (FTT.TO) surrendered 3.01 percent. Lundin Mining Corp. (LUN.TO) declined 0.36 percent.

The Capped Industrials Index fell 1.29 percent, with Bombardier Inc. (BBD.B.TO) dropping 1.22 percent.

The Information Technology Index fell 1.35 percent, with BlackBerry Ltd. (BB.TO) down 0.63 percent.

The Capped Telecommunication Index surrendered 0.48 percent with BCE Inc. (BCE.TO) up 0.73 percent and Rogers Communications Inc. (RCI.B.TO) up 0.87 percent.

Agrium (AGU.TO) gained 0.72 percent, after agreeing to sell its Niota and Meredosia storage and distribution facilities to subsidiaries of Trammo Inc. for approximately $50-million.

In economic news, a Commerce Department report showed new orders for U.S. manufactured goods dropped by 0.7 percent in November, matching the decrease seen in October. Economists expected orders to drop by about 0.6 percent.

The Institute for Supply Management Tuesday said its non-manufacturing index dropped to 56.2 in December from 59.3 in November. Economists expected the index to show a more modest drop to 58.0.

Germany's service sector logged a moderate growth in December, final survey data from Markit Economics showed Tuesday. The seasonally adjusted services Purchasing Managers' Index remained unchanged at 52.1 in December, with the flash estimate indicating the index at 51.4. Nonetheless, the average reading for the fourth quarter was the weakest since the third quarter of 2013.

Elsewhere in Europe, the British service sector growth eased more than expected to a 19-month low in December on some weak activity and new business, a survey by Markit Economics and the Chartered Institute of Purchasing and Logistics showed Tuesday.

The seasonally adjusted Markit/ CIPS Purchasing Managers' Index showed a notable drop to 55.8 in December, the lowest since May 2013, from 58.6 in the previous month. The index was forecast to fall marginally to 58.5.

Meanwhile, the French service sector returned to growth in December, final data from Markit Economics showed Tuesday. The final services Purchasing Managers' Index rose to 50.6 in December from 47.9 in November. According to preliminary estimate, the sector contracted in December, with reading at 49.8.